ISLAMABAD: The government of Pakistan borrowed Rs515 billion during the first quarter (July to September) of the current fiscal year 2025–26, which is almost 41% higher than the Rs363 billion borrowed in the same period last year.
According to the report by the Ministry of Economic Affairs, the government borrowed Rs198 billion in July, Rs192 billion in August, and Rs124 billion in September. The total borrowing estimate for the current fiscal year stands at Rs5.777 trillion.
The report revealed that under project financing, the government is expected to obtain $6.4 billion in loans this fiscal year through bilateral and multilateral agreements. The government has decided to issue only $400 million worth of bonds this year, compared to a higher amount last year.
According to the document, during September, the government obtained $436.6 million in loans, while in August, the figure was $680 million. Of the loans taken in September, $259.6 million came from bilateral and multilateral sources, and $177 million were raised through Naya Pakistan Certificates.
The report stated that in August, Pakistan received $100 million under the Saudi Oil Facility, and the country is expected to receive $1 billion under this head during the current fiscal year.
The Ministry of Economic Affairs also reported that from July to September, the government received $40 million in grants. For the current fiscal year, the federal government has estimated external financing of over $19.92 billion.
According to the report, Saudi Arabia and China will roll over $9 billion in safe deposits — $5 billion from Saudi Arabia and $4 billion from China — as part of the agreement with the International Monetary Fund (IMF).
Overall, Pakistan is expected to secure over $25 billion in total loans during the current fiscal year, including $12 billion in rollovers from friendly countries and $2 billion under the IMF loan programme.
The report stated that the Ministry of Finance will handle the rollover of $9 billion from Saudi Arabia and China, while $3 billion from the UAE will be rolled over through the central bank.
Project financing sources include the World Bank, Asian Development Bank (ADB), Islamic Development Bank (IsDB), and other financial institutions. During the current fiscal year, the government also plans to issue $250 million worth of Panda Bonds in the Chinese market, $400 million in other bonds, and sell $610 million in Naya Pakistan Certificates.
Expected loans from international institutions include $1.924 billion from the Asian Development Bank, $1.6639 billion from the World Bank Group, and $860 million from the Islamic Development Bank, of which $700 million will be received on a short-term basis.
